Pocket money: Is physical cash a thing of the past?

Last updated at 16:40
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Storing money in a piggy bank has long been one of the most popular ways for kids to save their cash.

However, some new research from the bank Halifax suggests that the porcelain penny holders could soon become a thing of the past!

The bank's findings suggest that children across the UK are swapping out their piggy banks for cashless alternatives.

According to the study, 80% of children in the UK said they still owned a piggy bank two years ago, but that figure fell to 72% in 2019.

The number of children who have some of their pocket money put into a bank account has increased over the same period from 19% to 23%. A further 4% now ask their parents to pay their cash into pocket money apps.

What's caused the change?
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Lots of children are now using the internet to manage their pocket money

The changing habits of teens is thought to be the reason why many children are choosing to ditch physical cash. 29% of boys and 32% of girls aged between 12 and 15 have some of their pocket money put straight into their bank accounts, compared to just 18% of boys and 12% of girls aged eight to 11.

Boys are more likely to go online to manage their accounts, with nearly a third (29%) of 12 to 15 year olds turning to the internet to manage their funds. In comparison, around a fifth (21%) of girls go online to keep an eye on their pocket money.

Could we soon be saying goodbye to physical money?

Despite Halifax's findings, it doesn't look like physical cash will be going away anytime soon.

89% of children age eight to 11 and 81% of children aged 12 to 15 still get some of their pocket money in cash.

Do you think we should ditch the cash, or would you still like to receive physical pocket money? Have your say below!

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